Repayment Assistance Plan (RAP) for Nurses: What Changed on July 1, 2026

The Repayment Assistance Plan launched July 1, 2026 as the federal government's replacement for SAVE and the simplification of income-driven repayment. For nurses with federal student loans, this is the most significant IDR change in a decade. The short version: RAP qualifies for PSLF, but for most nurses already on PSLF, IBR produces lower monthly payments — which means more forgiveness. This page explains the mechanics, who should switch, and what new nursing graduates borrowing after July 1, 2026 need to know.

How RAP works

RAP is an income-driven repayment plan created by the One Big Beautiful Bill Act (OBBBA, signed July 2025) and replacing the SAVE plan. It's available beginning July 1, 2026.

Payment formula

RAP payments are calculated as a percentage of your adjusted gross income (AGI), not your discretionary income. The rate scales in 1% steps per $10,000 of income, capped at 10%:

Dependent reduction: subtract $50/month per qualifying child before comparing. Single filer, no dependents shown above. Source: P.L. 119-21 (OBBBA), Dept. of Education RAP final rule.

Interest protection

On RAP, if your on-time monthly payment doesn't cover all the interest that accrued that month, the government waives the remaining unpaid interest. Your balance cannot grow above the amount you owed on the day you entered RAP. This is the core advantage over pre-SAVE IBR: your balance can't compound out of control during lower-income years.

Principal match

If your monthly RAP payment doesn't reduce your principal by at least $50, the Department of Education makes an additional $50 contribution toward your principal. This mostly matters for borrowers with very low incomes relative to their balance.

Forgiveness timeline

• PSLF: 10 years (120 qualifying payments) — same as every other IDR plan. Forgiveness is tax-free under IRC §108(f)(1).
• Non-PSLF (private sector): 30 years. This forgiveness is taxable income — the ARPA temporary exemption expired December 31, 2025 and was not extended by OBBBA.

RAP vs IBR for nurses: which produces lower payments?

This is the most important question for nurses already pursuing PSLF. For PSLF, lower payments = more forgiveness. You want the plan with the lowest qualifying payment.

IBR uses a different formula than RAP. IBR payment = 10% of discretionary income ÷ 12, where discretionary income = AGI minus 150% of the federal poverty guideline for your household size. In 2026, the single-person FPL is $15,960, so IBR subtracts $23,940 before applying the 10%.¹

^*With 2 dependents, IBR uses family-of-3 FPL ($27,320); 150% = $40,980. Discretionary = $135K - $40,980 = $94,020. Payment = $94,020 × 10% / 12 = $783/mo. RAP with 2 kids: $1,125 - $100 = $1,025. IBR wins by a wider margin when you have dependents.

RAP qualifies for PSLF — here's what changed for new borrowers

RAP is a qualifying repayment plan for PSLF. Payments made under RAP count toward the 120-payment requirement. The Department of Education confirmed this in a final rule in April 2026.²

What changed for nurses borrowing after July 1, 2026:

• IBR is not available to you. If you took out your first federal loans on or after July 1, 2026, you cannot enroll in IBR. RAP is your only income-driven option.
• PSLF still works. RAP qualifies. If you're a new grad going to a non-profit hospital, you're still eligible for PSLF — just at RAP's higher payment amount.
• RAP's interest protection helps newer borrowers more. With RAP, your balance can't balloon from unpaid interest while you're in your early career earning less. That's actually useful during your first 3–5 years of CRNA school repayment or staff RN income.

What happened to SAVE and the other legacy plans

Understanding where you currently stand:

• SAVE/REPAYE: Vacated by federal courts in early 2026 and eliminated by OBBBA. Borrowers in SAVE administrative forbearance need to enroll in a new plan. Qualifying payments made under SAVE before it ended count toward PSLF — those months are not lost.
• IBR: Remains available for pre-July 2026 borrowers. The recommended plan for nurses pursuing PSLF. Stable indefinitely for existing borrowers under OBBBA.³
• PAYE: No new enrollments. Existing PAYE borrowers can stay until July 1, 2028, then move to RAP or IBR.
• ICR: Same as PAYE — ends July 1, 2028.
• Standard 10-year: Still exists. Does NOT qualify for PSLF (too few payments, but no forgiveness benefit either).

Decision guide: which plan for which nurse

You're a staff RN or NP pursuing PSLF at a non-profit hospital

If you borrowed before July 1, 2026: enroll in IBR and stay there. It produces the lowest qualifying payment, maximizing what gets forgiven at month 120. If your SAVE forbearance months are counted and you've already crossed 60 payments, the IBR payment is temporary — you're close.

You're a new nursing grad who borrowed after July 1, 2026

RAP is your only IDR option. Enroll in RAP if you're heading to a non-profit employer and want PSLF. Your payments will be higher than IBR would have been, but PSLF still eliminates the remaining balance tax-free after 120 payments. Run the math: at $100K income with $100K in loans, you'd pay about $833/month for 10 years ($99,960 total) and whatever remains is forgiven. If your balance is $80K, you might pay back more than you borrowed — in that case, refinancing is worth comparing.

You're a CRNA going 1099 or working for a for-profit employer

PSLF is off the table. Your IDR options are IBR (for pre-July 2026 borrowers) or RAP (for all). RAP's interest protection is valuable here: if you're in a low-income period (locum gap, family leave, S-corp transition), RAP prevents your balance from compounding. But the 30-year forgiveness timeline is taxable and very long — most high-earning CRNAs are better off refinancing and aggressively paying down the debt over 5–7 years.

You were in SAVE and need to switch now

If you're at a non-profit hospital pursuing PSLF: switch to IBR. Your qualifying SAVE months count. IBR's lower payments preserve more forgiveness benefit than RAP. If SAVE forbearance months weren't counting as qualifying (because of the court injunction timing), talk to a student loan advisor about your exact payment count before making changes.

You're in PAYE or ICR

You can stay until July 1, 2028, when both plans end. At that point you'll be moved to RAP automatically (or IBR, if eligible). If you're pursuing PSLF, confirm whether your PAYE payment count transfers correctly when you eventually switch.

RAP vs refinancing for non-PSLF nurses

For nurses at for-profit employers who are ineligible for PSLF, the comparison shifts:

• RAP advantage: Interest protection. Your balance won't grow even if your income drops temporarily. No lump-sum "tax bomb" for 30 years (though 30-year forgiveness is taxable, it's still an option).
• Refinancing advantage: Lower interest rate, predictable payoff timeline, no 30-year drag. A CRNA making $240K who refinances $120K at 5.5% on a 7-year term pays it off by 2033. RAP would still be running until 2056 on a 30-year forgiveness track.
• Rule of thumb: If your loan balance is less than 1× your annual income and you're ineligible for PSLF, refinancing and paying aggressively likely beats 30-year RAP.

See our nursing school loan refinancing guide for the full PSLF vs refinance framework.